Buy? Build? Or Modular? Which costs less per square foot?

The price per square foot is one way to compare home prices.

Real estate listings will tell you a home’s price per square foot. This is the listing price divided by the home’s total square footage. Around us, the average price per square foot right now is $274, according to Realtor.com.  Modular homes are so much cheaper!

Home values in Hendersonville, NC
www.realtor.com/realestateandhomes-search

It seems like the per-square-foot price for a finished house is much more expensive than buying a prefab, modular or manufactured home, but that is not really a fair comparison.

A real estate per square foot price includes both the house and the land it is on.  It is calculated by dividing the asking price of the house by the number of square feet in the house. It only includes the part of the house that is heated with a ceiling higher than 7-feet.

The real estate agent measures the outside of the house to get the measurement and doesn’t subtract the thickness of the walls, so the inside, usable space is actually somewhat less space than it sounds like.

What is counted in the square footage?

As long as the space is heated and the ceiling is high enough, it is included in the square footage.

A finished attic or attached garage might count toward the home’s square footage if the ceiling is 7-feet or higher and there is a way out in case of fire.

There is a window in the log cabin attic to get out in case a fire blocks the stairs. But only the center, where the ceiling is over 7-feet high counts toward the square footage. Even though there is a lot of floor space, only the center counts.

A loft most likely doesn’t add to the floor space because the ceiling is not 7-feet high.

A basement may or may not count toward the square footage of the house. If the basement is finished and is only partly below ground, it might count toward the square footage. If the basement is completely underground, it doesn’t count, even if it is very usable.

My husband’s house (before we got married) was on a slope. The front door opened level on one road. The basement level opened on another road. The basement was finished, with a 7-foot ceiling, a kitchen and bathroom. The square-footage counted for the real estate listing (and the amount the mortgage company would loan to the buyer).

Decks, patios, balconies and porches don’t count toward the square footage. It does count if the porch is closed in, like a sunroom, Florida room, 4-season room or whatever you want to call it. As long as there is a way to heat it, the space is added to the house square footage.

Stairs are included in the square footage. A two story house includes the stairs in both the upstairs and downstairs square footage. Stairs are 9 to 12-feet long or more and usually at least 3-feet wide.  Some of the space under and over the stairs may be usable, but still, something to keep in mind. A single-story house with the same square footage will actually give you more usable space.

“Free” Square Footage

You may get a lot of usable space that is not included in the square footage cost.

Sheds, garages, workshops and any other space that is not attached doesn’t add to the square footage number. Un-attached space doesn’t count, even if it is completely finished. A workshop, studio or ADU, no matter how finished, isn’t part of the square footage.

Our log cabin only counted as having a little over 1000 square feet. The garage with workshop and the Classic Manor New Day Cabin didn’t count, but doubled it. The 12×40 front porch didn’t count either. So the 1000 square foot cabin actually has way more space than it seems.

Price and Cost: Buy? Build? Or Modular? Which costs more per square foot?
Land and Labor: Buy? Build? Or Modular? Which costs more per square foot?

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